Show t T BONNEVILLE LE DIRECTORS SUB IT s OF BONNEVILLE'S o POWER TO rAY AY OUT Knowing the gerness of the water users of vI the DOl Bor Irrigation Dis- Dis District Dis District District for information concerning pur- pur purported pur purported ported negotiations negotiations ions between bond bondholders holders their a agents and the directors acting s as as agent g for the water users we the director nt for the district here We feel at Jibe libe ty to offer the follow follow- following following following ing First let it re Je e understood that no noI noone noone l one is or has 1 sen een en authorized to rep rep- represent rep represent f I resent the dis dist jet but the directors and nd legal cou sel the latter acting under direction of the directors for said aid district The storage commission oi of Utah Ym Wim- R Wall Walk e George Bacon Dacon W WW W Armstrong Dr John A Widtsoe who are mern mem memi TS rs r s of said commission have not and w we e not commissioned to toA ask k for distri in vs s b bondholders a an l I district but at var var- various various various ious times hav hay offered their good offices of of- of offices to help i id d in some instances t the e directors ave accepted some of services ices We e have as ask at different times Dr John A Wid oe to assist together with attorneys attorney for district and al always ways greatly their as- as assistance as assistance s- s We h vc ye also greatly appreciated appreciated appreciated the kin kini words of advise and counsel from w n tel iter users t r It is true the thie th thi e e a are arc some who have for the ako aka of selfish reasons heat best known t to themselves however realizing are few i ii number now reali- reali ing of course at we have ventured to settle at a reduced amount of the origin bond issue of interest O which together gether with bond in- in terest etc ha to about a million dollars There has a appeared in this paper and other pa pap rs of this thi state at times articles that are misleading we therefore a arc asking the editor of the Clipper to rint in verbatim our directors pro proposition as submitted II- II 4 to the under wyer w ter of the bonds and present ers From time to toI I time we shall communicate with you I through the pr or otherwise if we n have have something something o ol vital importance and in which we w we 1 I should have your earnest considerate 01 n We Wo feel highly c ci at the ven very harmonious attitude of the the agents of the t ie e London Anglo Paris London Par Paris is Bank Dank and nd a aso o the agents for forthe forthe forthe the bond holders t ward the directors and the very brigl bright and encouraging prospects for earl early settlement of the differences as rely rein cd eel to the Bonne- Bonne Bonneville ville earli i ville ilIe Irrigation Dis A statement an ann suggestions for solution of DOnne le Irrigation Dis Dis- District Dis- Dis District District submitted re ull by the directors to the n Paris London London Paris London Dank Bank Representing the bond holders of the above name irrigation district Gentlemen j j jIn In conform conformity it with our promise I we e have cons ere in detail et iI the con con con- II- II I I on ii the Irrigation District State of Utah and submit herewith h our conclusions We regret exceed exceedingly that disaster has overtaken the project project and stand ready to join with you ou in working out outa outa outa a new plan for t the c operation of the project A rehearsal of the history of this project with its mistakes and failures cannot n w serve any good purpose Several j available reports made by Iby State lw w private agencies set f forth rth the fact facts from the inception of the enterprise T The e present con con- condition condition con condition and possibilities possibilities ties are arc of chief im- im importance im importance importance to those Iwho vho hope for a set set- settlement settlement set settlement of the difficulties of the Don Bon Donneville Bonneville Bon neville Irrigation District which will protect as far 31 a possible ble both farm farm- farmers farmers farmers ers and rs Present Finan Financial ial Condition The Bonn DOnn ille Irrigation Dis- Dis District District Dis District was planned to furnish acres of lan Ian lany with a full or sup sup- supplementary sup supplementary I supply of irrigation water amounting to acre feet at acost a acost I cost of 33 equivalent 73 to per acre or 28 3 per acre foot The plant as it now stands ands not yet comI completed com- com I has cos and the on page pace r Direct Direct Dirc rs rs Submit Analyses 04 on Bonneville's proba Probable over r To Pay Out Continued from Irom J rom page pa e 1 water amounting o acre feet is allott allotted d to only to acres m acres avera average e of oC ac a ace I e feet of water per acre making 1748 17 per acre or per acre f fo ft it t The District since the first year of its operations has operation 19 1921 has I-has has made proper and legal assessments amount amount- ing amounting in to During this time great at pressure fo f on payments has been brou brought ht to bear benr on n the water users yet the total receipts ts have haye been only or about t 38 per cent of the amount due Consequently the total indebtedness of the th district is ing increasing in annually A AS nearl nearly as can he foretold the receipts ts of the past five years Scars are arc larger than an those that may reasonably be expected ex during the next five years Therefore an nn early ad adjustment of the District difficulties will benefit all concerned concerned The Ability of th 7 Farmer to Pay This ut unfortunate delinquency is not due to any Unwillingness of oC the people in the District to pay their debts On the contrary the traditions and ideals ls of the tho Bonneville farmers would compel the utmost efforts to meet all honest obligations The sim- sim simple simple sim simple fact is that the earning power of the lands of the District is not sulli- sulli sufficient dent to pay th tha obligations of the farmers S Careful surveys show that the gross value of the crops produced on the lands of the i District is is in in the neighborhood of or about per acre This is practically the same fame figure as was as obtained by the survey by b the Utah Water Storage Commission of the Ute irrigated part of the Great Salt Cake Valley and by State and Federa studies During the period of operation on the average an- an annual annual an annual nual District ass assessment has been or 43 percent percent of the gross in income in- in income n- n come of the farms Under the In- In Increasing in- in increasing in increasing creasing District debt the acre bur bur- burden bur burden den is correspondingly increased No permanent system i of agriculture has been known to survive under so heavy hewy a requirement for repayment opera opera- tion operation and md maintenance of its irrigation system The Bo District can can- cannot can cannot not Dot do so In neVile Bl-neVile to the District tax the farmer has yo o 0 pay county and State Stale taxes ther is a large cash out out- outlay outlay out outlay lay in the production on of crops he has debts beide thos to the District and he must support himself and his fam fam- family fam- fam family family ily in a decent manner m ner The profits of agriculture when the capital invested is considered ar art always small and often do not exist The returns for labor and supervision are smaller on orthe 1 the farm than in almost any other activity Small farms 1 such as occur in the Bonneville j District usually yield more per acre atre because they the must do so but the the total profits of the farmer are n nd no larger The farm farm- farmer farmer er must continue to o find his reward in inthe inthe the somewhat intangible advantages advantage that adhere to life and labor in the open country 1 It is Comm commonly my held that a per person son ISon engaged enga ed in farming such as zes this project is i not able to pay rom the earning of othe the land more t tan an ten per cent othe of the gross crop i income come for irrigation repayment operation opera on ion and maintenance If more is paid unusual thrift and skill must be pra praised Agriculture O on the District is fair fair- fairly ly intensive Th T gross acre income is about the sam sans as the average for forthe the intensive Great Salt L Ls Like ke Valley More in- in crops ar aro being grown How How- However However However ever no system of bf f agriculture can ean be changed suddenly improvements come gradually Nor it possible to grow only intensive crops if permanent prosperity is sought Diversified farm farming farming faning ing ing with lower acre yields ields becomes necessary One Cannot annot hope for more than inthe a slow but buE steady increase in the average acre yield of the District The reason for the delinquency of the District is that the annual requirement ement of th the water user is beyond bey nd the earning pow pow- er power poi of the land The increased income due to the increased d water supply furn fum furnished District by the Bonneville Irrigation Di Dig Dis- additional is not sufficient sufficient to pay the addi- addi cost of wat water r The Problem of Unused Lands The inclusion o 0 lands of lands in the District tl-District District was not fisel made Of the District acres ed to the Dis- Dis Di at least 14 8 ac scovel cover build build- trigs ings corrals wa tt a tc to lands land s lands above e the canal and id c lands Some of the idle lands are arc t liable but will twill come idle into cultivation very gradually It If the productive ands alone were tvete in- in included in included included in the I the ayera average e gross acre acre taco inco incon e a would naturally he h hi greater seater and ea ca h acre could bear t a somewhat hi highe he burden Under ex- ex ex existing condition condition 2 2515 acres noes must produce enough to o pay the obligations a against t hick cannot bo Uc accent accomplished p by the Irrigation D i Any pin pl pi n of adjustment must take into account t this impossible sit situation sit sit- Th The Thc Problem o the he High IIi h Lift Litt The Bonneville Irrigation Dis- Dis District District Dis District furnishes water water by try b pumping into two t wo canals and feet respectively above th pumping station Un- Un Under Un Under der Jer the foot canal are 1795 acres of land under the foot canal and above the Moot noot canal arc are 1878 acres of land laird About bout acres of land included in the district are above the upper canal for low lilts lins irrigation by pt pumping roping is is always more more expense than Irrigation by gravity A lift of is far above the profitable p limit for ordinary agriculture agriculture agriculture ture When ift of feet is a n is un- un undertaken undertaken un undertaken can usually be ex- ex expected expected ex expected The capital cost of the neville Bon Bon Bon- Bonneville neville ne system m is itself above the safe limit for a supplemental water supply and the annual annual ever continuing cost of lifting water to such great heights Watell from to 0 00 per acre may be- be become be become come c ome a burden that the farmer can cannot can can- cannot cannot not bear The records ds of the District show shown r n a cost of for 1925 of C to pump an acre foot to the foot level and of powel 30 3 0 to the foot toot level or an average cost per acre foot of water pumped po o 0 both lifts of This would amount am nt to an average cost for power per acre acre feet of per acre Sor SOl an actual cost in 1925 on the district ct acreage of This depreciation docs does not include the tion of the pumping plant the cost of maintaining th canals or the cost cosof of supervision i fi At present the cost cast of pumping is distributed d equally equal Y r among the ers under the two lifts Farmers Under trader the lower canal finding it impossible ible to pay the Dis Dis- Dis District t tax are arc already cady al suggesting tha that the people unde undo each canal should pay pa only the actual cost ost of supplying them with water Sl S uld this be done the higher canal would have to be abandoned abandoned abandoned J The Great Groat Sa Sat t Lake Basin Project already authorized by Congress as a Federal project having the use of o f free interest free m ney is storing water at othe elevations far above the lands o of ol f the illel Bonneville I Irrigation District Canals are projected into Davis coun coun- ty county Should they plans be realized it i il t is very probable that the Bonneville e Irrigation Dist ct t could not operate e economically in competition with the th e gravity ity canals c the Federal Project This appears to be a real nasal realand and serious serious dan danger er that ma confront the District t in a very few fow yc rs Moreover it ft must be admitted d I that there are arc otter other k ok unused sources of o f water Vatu supply for the District which may be utilized should hould h uld the District tax burden contin continue f e beyond the farm farm- farmer's farmer's farmer's ers er's strength It will become become nece necessary necessary sary to achieve success on this project proJect project to all water ri rights from the canyo canyon streams by which gravity water n ni iy y be used for the lying lying high lands nd nd the higher canal thus abandoned ny ny nr such adjustment will be time cons ming iming and expensive even if it is fea feasible ble These nr arc formidable difficulties difficulties difficulties ties We see n way to overcome I Ithem them except torea to just torca-just nl just rea-just just the District affairs in such 9 manner as to bring brin the annual Di District tax within the limits of approved approval agricultural eco eco- economics economics eco economics t g Miscellaneous I Problems There arc aSe other important import problems ms that will w will 11 require attention in inthe inthe inthe the near future The canal system is i not complete not nat fully lined and expensive expensive ex- ex expensive pensive repairs Ore needed The pow pow- power power power er plant and P pu cps arc ore depreciating in value and replacements ments must soon be made The water ater applied on the hi higher her lands in tn rising Aising the water table on the lower lower la lads lands ds so that drainage systems alway expensive must b be installed to reel reclaim im the lands and to t continue their productivity Other minor problems plight bight ight also be stated An irrigation project is never corn com new ems are always ap- ap asp proems I These problem must also be considered con con- considered con in the of the th thi e District affairs Conclusions In the con id o of the fu- fu future future fu ture turc of the Bonn Donn ville Irrigation Die s Dietrict we have I en en c confronted con continually con con- with the these conditions 1 1 The Th e coming its is in the power an d pumping pumping plant 2 The repair in inand ng g dg and completing the canal system 3 The necessity of providing drain drain- drainage drainage age 4 The gre grEtt t cost of lifting wa- wa water tea teater 13 ter to heights 01 o 1 O and feet the danger of con cor petition from cheap cheap- cheaper cr er sources of w er supply and th the e I j probable abandon n lent of the hi high h Mir lin canal 5 The T elimination from the Distri of most of the 37 3 7 per cent of the I I ads now included in inthe it t I the District but are arc unproductive tive five and 6 G Th gross acre income which cannot be to c I rapidly mad end i t n in the end will d cla L termine the far far fan ers er's ability to pa y pad his obligations I These conditio s are of such a nn- nn na n ture that even were the project project now solvent it could not the terms of the existing contact cont When the tho existing condition of Insolvency is ig ad- ad added added ded to the which must be overcome overcome in |